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IN RE SALAZAR

BAP No. AZ-11-1551-DJuPa. Bankruptcy No. 08-11597-JMM.

465 B.R. 875 (2012)

In re Timothy Andrew SALAZAR and Gena Annette Salazar, Debtors. Lawrence J. Warfield, Chapter 7 Trustee, Appellant, v. Timothy Andrew Salazar; Gena Annette Salazar, Appellees.

United States Bankruptcy Appellate Panel of the Ninth Circuit.

Decided March 14, 2012.

Attorney(s) appearing for the Case

Jacob W. Sparks, Esq. , of Scheef & Stone, LLP, argued for appellant Lawrence J. Warfield, Chapter 7 Trustee; Kevin J. Rattay, Esq. , of Kevin J. Rattay, PLC, argued for appellees Timothy Andrew Salazar and Gena Annette Salazar.

Before: DUNN, JURY, and PAPPAS, Bankruptcy Judges.

OPINION

DUNN, Bankruptcy Judge.

During their bankruptcy case, the chapter 131 debtors received and spent tax refunds that were property of their bankruptcy estate under § 541 of the Bankruptcy Code. The debtors ultimately failed to confirm a chapter 13 plan and converted their case to chapter 7. The bankruptcy court denied the chapter 7 trustee's motion requesting that the debtors be compelled to pay into their chapter 7...

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